Xbox shuts down Tango Gameworks, Arkane Austin, and more studios
Microsoft has shut down Arkane Austin, Tango Gameworks, Roundhouse Studios, and Alpha Dog Games to focus on Bethesda's "high-impact titles."
The details:
The closures were first reported by IGN, which obtained a copy of an internal memo sent by Xbox head Matt Booty. Booty stated in the email that the decision was "grounded in prioritizing high-impact titles and further investing in Bethesda's portfolio of blockbuster games and beloved worlds," with some staff being moved to other projects and the rest being laid off.
Tango Gameworks, the developer of Hi-Fi Rush, and Arkane Austin, the studio behind Redfall, confirmed their closures yesterday afternoon. Both studios thanked fans and stated that their titles would continue to be playable in the future. Arkane Austin also stated that Redfall's development would end and that Hero Pass and premium Bite Back upgrade owners would be eligible for the game's upcoming "credit program."
Alpha Dog has also announced its closure, with the servers for mobile shooter Mighty DOOM shutting down on August 7. Microtransactions are no longer available for purchase, and players who have bought in-game currency recently will be able to request a refund via Bethesda.net.
Roundhouse Studios, which was founded in 2019 as a successor to Human Head, will be absorbed by ZeniMax Online Studios, with its team now working on The Elder Scrolls Online.
The community's reaction to the situation has been mostly negative, with Arkane Lyon boss Dinga Bakaba calling the closures "absolutely terrible" and a "gut stab" in a thread criticizing industry executives. Former Blizzard president Mike Ybarra, on the other hand, took to X to defend Microsoft Gaming CEO Phil Spencer, stating that he "knows this hurts him as much as anyone else."
Other recent layoffs and closures:
Paladin Studios has closed after nearly two decades of operation due to financial concerns resulting from a lack of work.
Take-Two has reportedly laid off the "vast majority" of Private Division's workforce, while Roll7 and Intercept Games are expected to close their doors entirely.
